Brazilian Developer to Invest More Than €150 Million in Lisbon

28 August 2017

Brazilian investors are not just interested in buying homes in Portugal, real estate development is becoming a focus of interest, specifically by the Nepar Group, which is now the first, and only, Brazilian developer/investor in Portugal.

Real estate opportunities are many and Tomaz Negrão, president of the Nepar Group – Negrão Empreendimentos e Participações S/A, a holding company with shareholdings, real estate and financial assets, told Diário Imobiliário that the firm intends to invest more than 150 million euros over the next two years in the city of Lisbon.

Focusing on the renovation of buildings in the historic centre of the Portuguese capital, the family group has developed and constructed buildings aimed at upper-income segments, especially in Rio de Janeiro, Brazil, for more than four generations. The firm decided to embark on an internationalisation of its operations, starting in Portugal.

Tomaz Negrão explained that the group arrived in Portugal at the end of 2013 and in early 2014 when his father was looking to buy a house in Lisbon for his retirement. However, due to their experience in Brazil and the opportunities that were being created here, “we decided to bet on buying not just an apartment but a whole building, and thus we started work as developers in Portugal.”

At the moment, the firm already has two projects that are near completion, Boavista 44 and Calçada de São Francisco – both with eight apartments (plus two stores in the Calçada de São Francisco building) – and are a sales success. The flats were 100% sold in just two months, and construction had not even started yet.

Four more projects under development

For Tomaz Negrão, the Portuguese capital is an extraordinary city, and besides the business, the Group is particularly pleased to help restore and upgrade a part of Lisbon’s historical heritage. “Our greatest satisfaction in taking on this work in Lisbon is to contribute to the restoration of the city’s important historical heritage, bringing back to life seventeenth-century buildings that were degraded and unused until recently, leaving this and other legacies to the city, creating jobs, contributing to the local economy and bringing considerable resources from abroad aimed at local investment,” he says.

In addition to these two Local Accommodation projects, the businessman reveals that there are already four more in development, one in Avenida da Liberdade, two in Baixa and another in Cais do Sodré.

“Our investment here is for the long term, and any profits we make here we intend to reinvest in Portugal, creating more jobs. The projects have been a success, we have more demand than supply, and there is a list of clients waiting for new projects,” the developer emphasised.

Although Brazilians are the primary focus of the group, Tomaz Negrão reveals that demand has been split equally between Brazilians and the Portuguese.

The Group’s president also confirmed the interest of Brazilian investors in Portugal and the refocusing their investments concerning Miami. “What happened was that after the crisis in the US, real estate prices became very cheap, the exchange rate was favourable, and those who bought saw their assets appreciate. However, the euro started to appreciate again, and property prices in Miami returned to the values seen before the crisis. In Portugal, even with recent price increases, property continues to be very affordable and appreciation and profitability very attractive,” the executive pointed out.

The Brazilian investor who buys luxury products also likes to diversify. “It’s a market that is never in crisis, and they are always investing. Usually, those who invest in our products in Brazil, also invest in Portugal,” he adds. Tomaz Negrão added that Brazilians feel dissatisfied and tired of the instability in their country and are looking to invest outside Brazil.

Bureaucracy and long waits for golden visas drive away investors

Despite the advantages and satisfaction of investing in Portugal, the Brazilian businessman points out that the bureaucracy is slow. Even so, it says that investing in Portugal is still advantageous for Brazilian investors, both legally and financially and that his group aids clients with bureaucratic hurdles. “We have services to help investors who come to Portugal to invest, including even help with local tourist accommodations,” Negrão stressed.

However, the executive warned that delays in obtaining golden visas are complicating the process, distancing investors and “this is not favourable for Portugal”.

The NEPAR Group operates in Portugal in development and construction through its company Alcon Construtora and in consulting and real estate mediation through Blend – Gestão Imobiliária.

Original Story: Diário Imobiliário

Translation: Richard Turner